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BoG Mops Up GHS 20.97 billion Through 14-Day Bills at 10.50%

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  • BoG Mops Up GHS 20.97 billion Through 14-Day Bills at 10.50%

The Bank of Ghana absorbed GHS 20.97 billion from the money market through its latest 14-day bill auction, as the central bank continued its short-term liquidity management operations aimed at influencing market liquidity and supporting monetary stability in its latest results of Tender 867 held on June 24, 2026.

The auction recorded a range of bid rates between 10.40% and 10.46% per annum, while bid rates allotted in full fell within the same discount-rate range of 10.40% to 10.46%.

On an interest-rate basis, allotted rates ranged from 10.44% to 10.50%.

The weighted average discount rate was 10.46%, while the weighted average interest rate settled at 10.50% for the period June 24 to June 26, 2026.

The auction outcome shows that short-term liquidity operations remain active, with the central bank continuing to use BoG bills as a tool to manage excess liquidity in the financial system.

Bank of Ghana bills are short-term central bank securities issued primarily for monetary policy and liquidity-management purposes. Unlike Treasury bills, which are issued by government to help finance public borrowing requirements, BoG bills are used by the central bank to influence liquidity conditions in the banking system.

The latest GHS 20.97 billion sale therefore represents a liquidity-mopping operation by the central bank.

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At nearly GHS 21.00 billion, the amount sold points to the central bank’s continued effort to manage cedi liquidity at a time when inflation has slowed sharply but policymakers remain focused on preserving price and exchange-rate stability.

The weighted average interest rate of 10.50% also suggests that short-term central bank sterilisation costs remain contained relative to the elevated rates seen during Ghana’s recent period of severe inflation and macroeconomic stress.

The results further show a narrow bid-rate range, indicating limited dispersion in market pricing for the 14-day instrument.

A narrow range often suggests that participating institutions had broadly similar expectations around short-term liquidity conditions and central bank rate guidance.

The auction also comes at a time when Ghana’s money market has remained active, with investors and banks continuing to adjust positions across Treasury bills, Bank of Ghana securities and fixed income instruments.

For banks, BoG bills provide a short-term instrument for placing liquidity with the central bank. For the central bank, they offer a mechanism to withdraw excess liquidity that could otherwise create pressure in the foreign exchange market or weaken the disinflation process.

The latest auction suggests the Bank of Ghana remains willing to actively absorb liquidity while keeping short-term rates within a relatively stable band.

The operation also reinforces the difference between monetary liquidity management and fiscal borrowing.

In recent months, Ghana’s fixed income market has seen strong activity in Treasury bills as investors continue to favour short-dated government instruments. BoG bills, however, serve a different purpose, with their issuance linked to central bank liquidity control.

The total amount sold, GHS 20.97 billion, will therefore be watched by analysts assessing the central bank’s liquidity stance and the broader direction of short-term money market conditions.

The Bank of Ghana’s latest 14-day bill auction fits within that broader stabilisation effort.

The scale of the mop-up shows that even in a low-inflation environment, the central bank remains active in draining liquidity where necessary to prevent excess money supply from undermining macroeconomic stability.

The June 24 auction was signed by Aimee Vyda Quashie, Secretary of the Bank.

Tags: Bank of Ghana Withdraws GHS 20.97 billion From Market in Latest Liquidity OperationBoG Liquidity Mop-Up Hits GHS 20.97 billion at Weighted Interest Rate of 10.4972%BoG Mops Up GHS 20.97 billion Through 14-Day Bills at 10.50%BoG Sells GHS 20.97 billion in 14-Day Bills as Short-Term Rates Hold Near 10.50%Central Bank Absorbs GHS 20.97 billion Through 14-Day Securities
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